NHDC feels that under the prevailing circumstances, 400 MW Maheshwar Hydro Power Project is highly unviable and has decided against any equity participation in the project. In January 2014, Ministry of Power had asked NHDC to contribute Rs. 700 crore towards the equity of Maheshwar HEP project, situated in downstream of NHDC projects on river Narmada. However, NHDC is of the opinion that steep increase in the project cost and also new R&R Act make the project unviable.
Maheshwar HEP was originally conceived in 1993 at an estimated cost of R.s 1653 crore. However, the project faced local protests and slipped into various controversies. At present the cost of the project is estimated to be Rs. 6,000 crore of which nearly half has been invested in the project. Banks who have lent to the project have already classified their loans as NPA.